Congress needs to fully repeal the medical device tax | Opinion

Last month, the U.S. House of Representatives took bold action to repeal a tax that is disproportionately harmful to Pennsylvania jobs and our state's economy. The medical device tax.

David Pacitti (contributed photo)

This is a 2.3 percent sales tax on medical devices and supplies - threatens to inflict heavy costs on Pennsylvania's medical imaging industry.

As a national leader in healthcare innovation, our state has a unique stake in the passage of this important federal legislation.

The tax has hurt imaging companies nationwide. In fact, data from the U.S. Department of Commerce showed that the tax killed nearly 29,000 U.S. medical technology industry jobs over just two years when it was originally implemented.

While currently suspended, the tax still looms, creating uncertainty for businesses, unsure if we can afford to offer new jobs and make investments in our local economies, or if we must hold that money to pay a large tax bill.

Medical imaging technology is incredibly important in Pennsylvania. According to the most recent data, our state is home to more than 30 medical imaging technology firms responsible for $1.6 billion in direct economic output, and $404 million in tax revenue.

Medical imaging accounts for nearly $3 billion in economic activity statewide. The industry supports the employment of more than 11,000 people, who are paid above-average salaries.

In short, this is an industry that is crucial to the state's economy -- not to mention the millions of patients who depend on the innovative healthcare technologies developed here.

A survey of leading medical device manufacturers has revealed that almost 70 percent of businesses are more likely to hire employees, and 60 percent would invest resources in additional research and development spending if the tax were permanently repealed.

The medical device tax has already been suspended twice since it was enacted in 2013. But with the last suspension set to expire on January 1, 2020, there's simply no time to waste.

Pennsylvania jobs - and lifesaving technologies - depend on quick action. I applaud the 13 bipartisan lawmakers from Pennsylvania who voted to pass this bill.

U.S. Sens. Bob Casey (D) and Pat Toomey (R) are, thankfully, cosponsors of this important legislation. But now is the time for their colleagues to follow their lead and finally vote to repeal the medical device tax once and for all.

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